S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant FINANCIAL AUDIT REPORT December 31, 2015 Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP) financed by the World Bank (WB) Under grant agreement TF 017336 Office: Villa 3, Kasemi st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006 TABLE OF CONTENTS Page INDEPENDENT AUDIT REPORT 3 AUDIT OBJECTIVES......................................................................................5 STANDARDS AND ETHICS.............................................................................5 A U D IT SC O PE ...............................................................................................6 PROCEDURES PERFORM ED...........................................................................6 SOURCES OF INFORM ATION......................................................................... USE OF THIS REPORT.................................................................... ...........g. INFORMATION ABOUT THE GRANT ..............................................................9 FINANCIAL STATEMENTS REPORTS...............................................................11 1. STATEMENT OF SOURCES AND USES..........................................................11 2. STATEMENT OF DESIGNATED ACCOUNT RECONCILIATION........................12 3.STATEMENT OF EXPENDITURES (SOE) WITHDRAWAL SCHEDULE................13 4.STATEM ENT OF ASSETS ..............................................................................13 FACTUAL FINDINGS FOR FINANCIAL STATEMENTS .......................................14 1.SIGNIFICANT ACCOUNTING POLICIES ...................................................14 2.INTERNAL CONTROL SYSTEM........... ...................................................15 3.CURRENCY EXCHANGE VARIANCE.........................................................16 4.GOODS, NON-CONSULTING SERVICES, CONSULTANTS' SERVICES & TRAINING ...................................................16 5.OPERATING COSTS................................................................................16 6.CASH FLOW RECONCILIATION...............................................................17 7.WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS.............18 ANNEX: FINANCIAL AUDIT OF THE PREPARATION GRANT TF97823..............................23 WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS...................24 n o S. Mostafa El Gammal Chartered Accountaint Finance &Taxation Consultant INDEPENDENT AUDIT REPORT To The Management of Sustainable Persistent Organic Pollutants (POPS) Management Project (SPMP) 11-January- 2016 We have audited the financial statements of Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP) financed by the VVorld Bank (WB) under credit agreement TF 017336 represented in Statements of Sources and Uses of Funds and Statement of Expenditures (SOEs) for the period from August 26, 2014 to December 31, 2015, designated account reconciliation as of December 31, 2015.Our responsibility is to express an independent opinion on these financial statements based on our audit. Respective responsibilities of the auditors It is our responsibility to form an independent opinion, based on our audit, on those statements and to report our opinion to you. Basis of opinion We conducted our audit in accordance with International Standards on Auditing (ISA) and such other specific procedures requested by the Governing Body. An audit includes examination, on a test basis, evidence supporting amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the governing body in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Project's (group's) circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. 3 office : Villa 3, Kasemn st., DOkk, Giza Tel : 33352389 Fax : 33365689 Mob. : 01222310006 .W. , S. Mostafa El Gammal gi Chartered Accountant Finance &Taxation Consultant Opinion: In our opinion: The financial statements referred to above and the related notes, present fairly in all material respects, the financial position, the statement of sources and uses of funds, and account reconciliation of Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP) as of December 31, 2015. Expenditures provided in the statement of expenditures are properly supported and represent eligible expenditures under the loan agreement. Also the procurements of goods/Non consulting services, consulting services incurred during the year were conducted in accordance with the World Bank procurement guidelines under IBRD Loans and IDA Credits, dated January 2011 (Procurement Guidelines). Our audit did not identify material internal control weakness associated with project internal controls or material instance of non-compliance with the agreements terms and applicable laws, rules and regulations. Yours sincerely, Auditors' signatuva- Name of Auditor signing [Dr. Hesham Mahmoud] Auditors' address [Villa 3, Kasem street, Dokki, Giza, Egypt] Date of signature
  • . 4i Office : Villa 3, Kasemn st., Dokki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006 S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant AUDIT OBJECTIVES The objectives of this audit are to express an opinion on whether: 1. The Financial Report presents fairly, in all material respects, the actual expenditure incurred and the revenue received for the grant financed by the World Bank (WB) under credit agreement TF 017336, for the period from 26 August 2014 till 31 December 2015 in conformity with the applicable contractual conditions; and 2. The projects funds received from the World Bank (WB) under credit agreement TF 017336 have, in all material respects, been used in conformity with the applicable Contractual Condition and the Project Financial Statements (PFS) show true and fair presentation of the Project's financial position as of the end of each fiscal year and funds receipts and expenditures incurred during the period then ending. 3. The Procurement Guidelines of the World Bank have been properly applied and in accordance with the Project's Loan Agreement. 4. The Internal Control System designed, set up and operated by the Entity for the purpose of managing risks to the achievement of the objectives of the project, was suitable designed and operated effectively for the Egyptian Environmental Affairs Agency (EEAA) Project for the period from 26 August 2014 till 31 December 2015. 5. Determine if the Statement of Assets presents properly (i.e. number, description and value of assets) and completely (i.e. all assets covered by the expenditure in the Financial Report) the assets acquired for the Egyptian Environmental Affairs Agency (EEAA) Project for the period from 26 August 2014 till 31 December 2015 is in conformity with the Contractual Condition STANDARDS AND ETHICS Our engagement was undertaken in accordance with: - International Standard on Related Services ('ISRS') 4400 Engagements to perform Agreed-upon Procedures regarding Financial Information as promulgated by the International Federation of Accountants ('IFAC); - The Code of Ethics for Professional Accountants issued by the IFAC. A Offic :Vl , K st>o za MYTeMl a 33 65 - M,ob. - L12 22310 Office: Villa 3, Kasennst., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.:01222310006 - . -. S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant AUDIT SCOPE The audit of Project accounts and funds flow is considered as special purpose contractual agreement audit which in addition to compliance with International Standard on Auditing, the auditor need to consider the World Bank reporting requirements, compliance with the World Bank Procurement Guidelines. The audit scope includes: a) The audit will be carried out in accordance with the International Standards on Auditing, having regard to relevant financing agreements and World Bank specific requirements, and should pay special attention to the following: b) All funds provided to the Project have been used, accounted for and classified in accordance with the relevant financing agreements; c) Goods and services financed have been procured in accordance with the relevant financing agreement; d) All necessary copy of supporting documents, records, and accounts have been kept in respect of all project ventures. Clear linkages should exist between the books of account and reports presented to the Bank; e) Where Designated Accounts have been used, they have been maintained in accordance with the provisions of the relevant financing agreement; f) Compliance with specific covenants of the Loan Agreement and Project Appraisal Document (e.g, compliance with the short-term and long-term borrowing conditions, cash flow covenant); g) Determine eligibility of expenditures claimed under Statement of Expenditures submitted to the World Bank for replenishment. This is in addition to substantiation of these expenditures; h) Review all correspondences with the World Bank in relation to the Project including copies of the Aide Memoires, Mission Reports, and assess progress on all financial issues. PROCEDURES PERFORMED As requested, we have only performed the procedures listed in Annex 3 of the terms of reference for this engagement. Bank policy requires that projects be supervised to ensure that loan/credit proceeds are used only for the purposes for which the loan/credit was granted, with due regard to economy, efficiency, and the sustainable achievement of the project's development objectives. Under the action based disbursement method, loan proceeds are disbursed on the basis of Statem t kp res 6 Office: Villa 3, Kasemn st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006 . * -. S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant (SOEs) for the expenditures below a threshold which is established by the legal agreement for each project. The SOE review is to ensure eligibility of expenditures, adequacy and sufficiency of documentation, and proper procedures for and controls over SOE use. The objectives of the review are to ensure that the funds disbursed under SOEs are used for the purposes intended in accordance with legal agreements, and mitigating chances of misuse. This review process includes the following: a) Determine whether appropriate levels of review and approval within the internal control system are in place regarding SOE disbursement; b) Determine whether SOE procedures are properly used in accordance with the project's legal agreement(s); c) Determine whether the project has maintained adequate supporting documentation to support claims for Bank disbursements on the basis of SOEs; d) Verify that expenditures are eligible for financing by the World Bank and are properly accounted for in terms of the disbursement categories, and that the correct disbursement percentage has been applied; e) Identify any ineligible, questioned and unsupported expenditures, and where identified, recommend follow up actions; and f) Identify possible improvements in the project financial management practices in the light of deficiencies identified during the review. The SOE review process consists of: 1) Obtain the SOE-based withdrawal applications from the Country disbursement team, and identify and select a sample of SOE withdrawal applications and transactions for field review. A random sample of SOEs shall be selected from the list of SOE disbursement applications available within the Bank. ICS - the disbursement information system is another way to obtain information about withdrawal applications. The selection shall be based on (i) the nature, size and expected number of contracts below the SOE threshold; (ii) the Bank's previous experience with the particular borrower i onable available time for review and cost effective consideration. Norma 0 9tS&EA sd 7 Office : Villa 3, Kasemn st., Dokki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006 - . * -*. . . M E S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant expenditures should be selected for review. The number of transactions and the amount of expenditures should be taken into account. 1) Review of the control procedures regarding SOE disbursement. The reviewer should consider the effectiveness of the following controls and document any instances where controls are lacking or are considered in need of strengthening: 2) Documentation review. The documentation of a sample of withdrawal applications is reviewed. The documents that normally support payments are (a) evidence of receipt, invoice or performance, (b) evidence of payment, and (c) proper procurement documents. 3) Verify eligibillty of expenditures. The review determines whether the expenditures are properly supported and are eligible for Bank disbursement in accordance with legal agreements. SOURCES OF INFORMATION The Report sets out information provided to us by you in response to specific questions or as obtained and extracted from your accounts and records. USE OF THIS REPORT This Report is solely for the purpose set forth above under objective. 8 Office : Villa 3, Kasemn st., Dokki, Giza Tel : 33352389 Fax : 33365689 Mob.: 01222310006 S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant INFORMATION ABOUT THE GRANT PROJECT DESCRIPTION The project development objective is to improve the management and disposal of targeted stockpiles of obsolete pesticides, including Persistent Organic Pollutants (POPs) and Polychlorinated Biphenyl (PCBs), in an environmentally sound manner. The project consists of the following two parts: Part A: Destruction of High Risk Stocks of Obsolete Pesticide i. Carrying out an environmentally sound program for the safe packaging, removal, transportation, export and destruction of approximately 1,000 tons of identified high risk stocks of pesticides and other high-risk obsolete pesticides, following a risk based prioritization approach, in state-of-the-art facilities overseas, including: (a) disposal of the stockpiles of about 220 tons of Lindane at the Al-Adabeya port storage facility; disposal of the stockpiles of about 440 tons of pesticides at the El Saff storage facility; and (c) the identification of all high risk stockpiles, and dispose of another approximately 350 tons of high risk stocks currently scattered across a number of sites. ii. Technical Upgrading of Ministry of Agriculture and Land Reclamation (MALR) Central Agricultural Pesticides Laboratory to identify unlabeled products uncovered, as necessary, and to analyze pesticide samples. iii. Enhancing the environmental management system of MSEA/EEAA to promote the identification, packaging, removal, transportation and destruction of high risk stocks of obsolete pesticides. This will include training of staff of EEAA and the Cooperating Ministries to track and monitor obsolete stockpiles and ensure the ultimate destruction of high risk stockpiles, Project monitoring and evaluation and enhancing EEAA and MALR system of tracking obsolete pesticides, and dissemination of results, including raising public awareness. Part B: Destruction of High Risk Stocks of Obsolete Pesticide i. Carrying out of a program for the management of PCBs and PCB containing et focusing on PCBs in the public electricity generation, transmission and distribution s a) the acquisition and installation of equipment for dechlorination and purific f 9 Office : Villa 3, Kasemn st., Dokki, Giza Tel : 33352389 Fax : 33365689 Mob. :01222310006 - . .*-. V1 S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant low to medium-concentration stocks of approximately 1000 tons of PCB contaminated oils, which will produce an oil suitable for reuse in transformers; (b) providing technical assistance to EEAA and MOEE/EEHC staff to address the decommissioning of PCB containing equipment; and (c) provision of laboratory support and the acquisition and utilization of instruments, electronic equipment and chemicals for sampling to measure the level of PCBs. ii. Enhancing the environmental management system of MSEA/EEAA to promote the identification and decontamination of PCB-contaminated oils, including training of staff of EEAA and the Cooperating Ministries to track, monitor and decontaminate PCBs and PCB containing equipment, supporting Project monitoring and evaluation and enhancing EEAA's system of tracking PCBs and PCB containing equipment to ensure sustainable project outcomes, monitoring of project performance indicators, and dissemination of results, including raising public awareness. Grant Expenditure Categories, Amounts and Percentage of Financing; Amount of the % of Category Grant allocated expenditures to in US $ be financed - Goods, Non - Consulting Services, Consultants' Services US $ 7,650,000 100% and Training - Operating Costs US $ 450,000 100% Total Grant Amount us $ 8,100,000 10 Office: Villa 3, Kasem st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006 - . - .. S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant 1- STA EMENT OF SOURCES AND USES For the period ended December 31, 2015 WB WB Cumulative contribution contribution USD $ USD $ Funds Receipts: Opening Balance August 26,2014 --- --- Advance received December 4,2014 600,000 --- Direct Payment - - Replenishments received --- .. Currency Exchange Variance --- .- Interest Revenues ..- Total Funds 600,000 Less: Expenditures from SOE - Goods, Non- Consulting Services, Consultant's . . 236,523.88-- Services & Training -Operating costs 79,696.53 --- Total Expenditures 316,220.41 --- Grant Balance 283,779.59 Adjustments: Petty Cash on hand in SPMP PMU 194.56 --- Balance per bank statement as of December 31,2015 283,585.03 --- 11 Office : Villa 3, Kasem st., Dokki, Giza Tel : 33352389 Fax: 33365689 Mob. :01222310006 P-1 S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant 2- STATEMENT OF DESIGNATED ACCOUNT RECONCILIATION For the period ended December 31, 2015 WB WB Cumulative contribution contribution USD $ USD $ Bank Statement Balance on August 26,2014 0 Add: Advance received 600,000 Direct Payment .-- Replenishments received --- --. Currency Exchange Variance --- .-- Interest Revenues .-- Present Outstanding amounts advanced to the Designated Account 600,000 --- Designated Account Closing Bank Balance 283,585.03 --- Add: Expenditures from SOE -Goods, Non- Consulting Services, Consultant's Services & Training -Operating Costs 79,696.53 --- Total Expenditures 316,220.41 Add: Petty Cash on hand in SPMP_PMU 194.56 --- Total Funds received during the period 600,000 --- Financial Officer Proj 12 Office: Villa 3, Kasem st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006 - . * - S. Mostafa El Gammall Chartered Accountant Finance &Taxation Consultant 3- STATEMENT OF EXPENDITURES (SOE) WITHDRAWAL SCHEDULE For the period ended December 31, 2015 This statement includes the replenishments received from the World Bank during the reviewed period. Direct Advances Replenishments Total Month _______Payment US$ US$ US$ US$ Opening Balance 600,000 --- --- 600,000 Total 600,000 ----- 600,000 4- STATEMENT OF ASSETS For the period ended December 31, 2015 We have audited the statement of assets for SPMP with the following procedures: a. We have Reviewed procurement procedures to determine that sound commercial practices including competition were used, reasonable prices were obtained, and adequate controls on qualities and quantities were received, b. The purchase and procurement of assets and compliance with Agreement Terms and Conditions. We have examined supplies (e.g. vehicles, equipment, tools, various materials and products for compliance with procurement rules as per agreement terms and conditions. c. Assess the existence of assets (e.g. physical inspection of assets), valuation, ownership, recording and classification and disclosure of assets; In our opinion, Expenditures provided in the statement of assets are properly supported and represent eligible expenditures under the loan agreement. Also the procurements of goods and equipment's incurred during the year were conducted in accordance with the Worl procurement guidelines under IBRD Loans and IDA Credits, dated January 2 t Guidelines). Office: Villa 3, Kasem st., Dokki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006 - . * *- . * S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant FACTUAL FINDINGS FOR FINANCIAL STATEMENTS For the period ended December 31, 2015 1- SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies adopted as follows: SPMP project use the cash method of accounting for ease of administration and accountability of funds. The cash method provides a clear and concise audit trial from the accounting records to the certified fiscal report. The Accounting Records are as follows: a) General Journal b) Ledger Account c) Financial Reports The Accounting Reporting Cycle are as follows: 1. Financial Report 2. Ledger Account 3. General Journal 4. Accounting forms 5. Supporting Documents e.g. (contracts, invoices,.. .etc.) The financial statements have been prepared under the basis of cash receipts and cash disbursements. The significant accounting policies adopted as follows: a. Accounting convention The statements are prepared in accordance with the cash basis convention. b. Taxation The World Bank Loan should not be used to pay any sort of taxes. Taxes due on purchased goods or services are charged to the Egyptian party. The Project Management Committed with the World Bank regulations in this regard during the audited period. c. Expenditures Expenses are incurred when actually paid. 14 Office: Villa 3, Kasem st., Dokki, Giza Tel :33352389 Fax: 33365689 Mob. :01222310006 - . - .. S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant 2- INTERNAL CONTROL SYSTEM Internal control is defined as a process affected by the entity's management , and other personnel designed to provide reasonable assurance regarding the achievement of the following objectives: 1. Reliability and integrity of financial reporting. 2. Effectiveness and efficiency of operations. 3. Safeguarding of assets, and compliance with contract agreement regulations Summary of SPMP internal controls A. Independent checks on performance and proper valuation of recorded amounts Document/Activity Responsible Official(s) Selection of consultant Technical Committee Evaluation of the performance of the consultant Project Manager/ National Project Director proper reporting of the financial data Finance Manager Overall supervision of financial and technical work Project Manager/ National Project Director B. Segregation of duties Document/Activity Responsible Official(S) Evaluation of bids and proposals Procurement Committee Approval for selection Project Manager Approval of reports Project Manager Preparation of check/payment Financial Manager Review of financial procedures Financial Manager/Ministry of finance representative in EEAA Signature on check/payment Project Manager/Ministry of finance representative in EEAA Bookkeeping Financial Manager Check distribution Financial Manager In our opinion, SPMP project use adequate authorized level of internal control to maintain disbursements for approving transactions before the procurement process & other disbursements and in checks inquiry. We recommend the PMU to start install and use the financial Management system that was contracted on November 2015 for the project. 15 office: Villa 3, Kasern st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006 S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant 3- CURRENCY EXCHANGE VARIANCE The functional currency of the project is the United States Dollars (USD $) , accordingly all the transactions of the Egyptian Pounds are translated according to the official exchange rate and revaluation of the currency exchange rate occurs according the spot rate of the Central Bank of Egypt on the date of cashing the payment order. 4- GOODS, NON-CONSULTING SERVICES, CONSULTANTS' SERVICES & TRAINING This account represents amounts withdrawn through the following: Current WB Cumulative Contribution WB USD $ Contribution USD $ Goods, Non consulting services, Consultants services, Training Total cash disbursed 236,523.88 --- 5- OPERATING COSTS This account represents amounts withdrawn through the following: Cumulative Current WB ContributionWB USD $ Contribution USD $ Operating costs 79,696.53 --- Total cash disbursed 79,696.53 --- 16 Office: Villa 3, Kasem st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob. : 01222310006 - . - .. S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant 6- CASH FLOW RECONCILIATION Cash Flow Reconciliation of Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP) for the period from August 26, 2014 to December 31, 2015 Description USD $ Opening balance as per cashier and bank statements as at (26/8/2014) A 0 RECEIPTS Advances/disbursements from the World Bank 600,000 Interest received 0 Total Receipts B 600,000 Payments Payments made -Goods, non-consulting services, consultants services and training expenditures 236,523.88 -Operating costs expenditures 79,696.53 Other disbursements Total payments C 316,220.41 Calculated balance D (A+B-C) 283,779.59 Petty Cash in hand 194.56 Balance of account no (4/082/18424/1) in Bank (Central Bank) held in currency (in USD) Total balance as per cashier and bank statements as at (31/12/2015) 283,779.59 Differences in receipts and income in financial report Difference in payments and expenditure in the financial report (2) --- Difference in payments and expenditure in the financial report 0 Total Project funds as at (31/12/2015) F Differences G (F-D) 0 17 Office : Villa 3, Kasem st., Doki, Giza Tel :33352389 Fax :33365689 Mob.: 01222310006 S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS (No.1) For the period ended December 31, 2015 Part A: SOE sample reference information Credit No. Grant Agreement TFO 17336 Project Name Sustainable Persistent Organic Pollutants (POPs)Management Project (SPMP) pplication No. 10 SOE page No. I item No. 1 Amount of transaction USD $ 21,353.17 Disbursement category Goods and Equipment Reporting period December 31, 2015 Description of expenditures Paying invoice for MISR Company technology for buying computers and printers to PMU Part B: Checklist and Results of the review for each transaction Description of documents Whether available Whether acceptable (Yes, No, NA) (Yes, No, NA) 1) procurement documents Yes Yes 2) purchase contract / order Yes Yes 3) letter of credit NA NA 4) supplier's invoice and certificate of origin Yes Yes 5) shipping documents NA NA 6) contractor's or consultant's invoices or certificates Yes Yes 7) other evidence of receipt of goods or services NA NA 8) force account records Yes Yes 9) recurrent cost records NA NA 10) authorization for payment Yes Yes 11) evidence of payment Yes Yes 12) accounting records Yes Yes Conclusion: 1. Whether the expenditures are eligible for the Bank financing (Y/N): Y 2. Whether the expenditures are properly supported and accounted for (Y/N): 3. Comments and recommendation: None. r 18 Office: Villa 3, Kasem st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006 S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS (No.2) For the period ended December 31, 2015 Part A: SOE sample reference information Credit No. Grant Agreement TF01 7336 Project Name Sustainable Persistent Organic Pollutants (POPs)Management Project (SPMP) pplication No. 12 SOE page No. / item No. 1 Amount of transaction USD $ 10,756.51 Disbursement category Goods Reporting period December 31, 2015 Description of expenditures Paying invoice for El Mazen Company for buying Ifurniture to PMU Part B: Checklist and Results of the review for each transaction Description of documents Whether available Whether acceptable (Yes, No, NA) (Yes, No, NA) 1) procurement documents Yes Yes 2) purchase contract / order Yes Yes 3) letter of credit NA NA 4) supplier's invoice and certificate of origin Yes Yes 5) shipping documents NA NA 6) contractor's or consultant's invoices or Yes Yes certificates 7) other evidence of receipt of goods or NA NA services 8) force account records Yes Yes 9) recurrent cost records NA NA 10) authorization for payment Yes Yes 11) evidence of payment Yes Yes 12) accounting records Yes Yes Conclusion: 1. Whether the expenditures are eligible for the Bank financing (Y/N): Y 2. Whether the expenditures are properly supported and accounted for ( /PO: 3. Comments and recommendation: None Office : Villa 3, Kasem st., Dokki, Giza Tel : 33352389 Fax : 33365689 Mob. :01222310006 - .... S. Mostafa El Gammal Chartered Accountant Finance Taxation Consultant WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS ((No.3) For the period ended December 31, 2015 Part A: SOE sample reference information Credit No. Grant Agreement TF017336 Project Name Sustainable Persistent Organic Pollutants (POPs)Management Project (SPMP) Application No. 53 SOE page No. / item No. 1 Amount of transaction USD $ 4040.35 Disbursement category Consultants' services Reporting period December 31, 2015 Description of expenditures Paying fees for Limra Egypt Company for buying and ,installing financial information system for SPMP project. Part B: Checklist and Results of the review for each transaction Description of documents Whether available Whether acceptable (Yes, No, NA) (Yes, No, NA) 1) procurement documents Yes Yes 2) purchase contract / order Yes Yes 3) letter of credit NA NA 4) supplier's invoice and certificate of origin Yes Yes 5) shipping documents NA NA 6) contractor's or consultant's invoices or Yes Yes certificates 7) other evidence of receipt of goods or NA services 8) force account records Yes s 9) recurrent cost records NA A 10) authorization for payment Yes 11) evidence of payment Yes Y 12) accounting records Yes Yes Conclusion: 1. Whether the expenditures are eligible for the Bank financing (Y/N): Y 2. Whether the expenditures are properly supported and accounted for (Y/N): Y 3. Comments and recommendation: None 20 Office : Villa 3, Kasern st., Dokki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006 Vn S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS (No.4) For the period ended December 31, 2015 Part A: SOE sample reference information Credit No. Grant Agreement TF017336 Project Name Sustainable Persistent Organic Pollutants (POPs)Management Project (SPMP) Application No. 40 SOE page No. I item No. 1 Amount of transaction USD $ 17296.41 Disbursement category Training Reporting period December 31, 2015 Description of expenditures Paying expenses for Ein Sokhna POPs training programs for the partners ministries Part B: Checklist and Results of the review for each transaction Description of documents Whether available Whether acceptable (Yes, No, NA) (Yes, No, NA) 1) procurement documents Yes Yes 2) purchase contract / order Yes Yes 3) letter of credit NA NA 4) supplier's invoice and certificate of origin Yes Yes 5) shipping documents NA NA 6) contractor's or consultant's invoices or Yes Yes certificates 7) other evidence of receipt of goods or NA services 8) force account records Yes 9) recurrent cost records NA 10) authorization for payment Yes 11) evidence of payment Yes 12) accounting records Yes Yes Conclusion: 1. Whether the expenditures are eligible for the Bank financing (Y/N): Y 2. Whether the expenditures are properly supported and accounted for (Y/N): Y 3. Comments and recommendation: None 21 Office : Villa 3, Kasernst., Doki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006 S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS (No.5) For the period ended December 31, 2015 Part A: SOE sample reference information Credit No. Grant Agreement TF01 7336 Project Name Sustainable Persistent Organic Pollutants (POPs)Management Project (SPMP) Application No. 26 SOE page No. / item No. 1 Amount of transaction USD $ 4960.04 Disbursement category Operating costs Reporting period December 31, 2015 Description of expenditures Paying invoice for printing publication materials to the PMU Part B: Checklist and Results of the review for each transaction Description of documents Whether available Whether acceptable (Yes, No, NA) (Yes, No, NA) 1) procurement documents Yes Yes 2) purchase contract / order Yes Yes 3) letter of credit NA NA 4) supplier's invoice and certificate of origin Yes Yes 5) shipping documents NA NA 6) contractor's or consultant's invoices or Yes Yes certificates 7) other evidence of receipt of goods or Yes Yes services 8) force account records Yes es 9) recurrent cost records NA 10) authorization for payment Yes * . 11) evidence of payment Yes Y 12) accounting records Yes e Conclusion: 1. Whether the expenditures are eligible for the Bank financing (Y/N): Y 2. Whether the expenditures are properly supported and accounted for (Y/N): Y 3. Comments and recommendation: None 22 Office : Villa 3, Kasern st., DOkk, Giza Tel :33352389 Fax :33365689 Mob. :01222310006 S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant INDEPENDENT AUDIT REPORT To The Management of Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP) 11-January- 2016 We have audited the preparation Grant TF97823. This Grant amounted to USD 100,000, all under one consultancy contract, and it was Directly Disbursed by the World Bank to the beneficiary according to a single Withdrawal Application. - Factual finding No.1: During our audit review, and as stated in Article No. 5 (Audit Deliverables/ iv- Audit Report for TF97823 in the Terms of Reference for Annual Audit and Semi annual Reviews of Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP) financed by the World Bank (WB), we found that EEAA 'the Protection of the Environment Fund(EPF)' has approved to transfer to on 30th May 2012 through application of withdrawal with a direct payment application type the amount of 100,000 USD to Tauw company. (Attached Part B: Checklist and Results of the review for the transaction) 0* 23 Office : Villa 3, Kasem st., Dokki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006 i S. Mostafa El Gammal Chartered Accountant Finance &Taxation Consultant WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS (No.6) For the period ended December 31, 2015 Part A: SOE sample reference information Credit No. Grant Agreement TF97823 Project Name Sustainable Persistent Organic Pollutants (POPs)Management Project (SPMP) Application No. 1 SOE page No. / item No. 1 Amount of transaction USD $ 100,000 Disbursement category Consultancy services Reporting period December 31, 2015 Description of expenditures Paying consultancy services for Tauw Company for project preparation study Part B: Checklist and Results of the review for each transaction Description of documents Whether available Whether acceptable (Yes, No, NA) (Yes, No, NA) 1) procurement documents NoNo 2) purchase contract / order No No 3) letter of credit NA NA 4) supplier's invoice and certificate of origin No No 5) shipping documents NA NA 6) contractor's or consultant's invoices or No No certificates 7) other evidence of receipt of goods or NA NA services\,e 8) force account records _ No No 9) recurrent cost records NA 10) authorization for payment Yes Yep 11) evidence of payment No 12) accounting records No Conclusion: 1. Whether the expenditures are eligible for the Bank financing (Y/N): Y 2. Whether the expenditures are properly supported and accounted for (Y/N): N 3. Comments and recommendation: None 24 office : Villa 3, Kasemn st., Dokki, Giza Tel : 33352389 Fax : 33365689 Mob. : 01222310006